Post on 28-Jun-2020
transcript
Regd. Office : VSB Mahatma Gandhi Road Fort Mumbai – 400 001 Tel 91 22 6659 1968 email : manish.sansi@tatacommunications.com
CIN no. : L64200MH1986PLC039266 web site : www.tatacommunications.com
Tata Communications Limited
HQ/CS/CL.24B/16972B
June 26, 2020
Sir,
Sub: Presentation to Analyst / Institutional Investor Meetings pursuant to Regulation
30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015.
This is further to our intimation dated June 23, 2020 regarding the Tata Communications Analyst
Meet scheduled through a virtual webinar on June 26, 2020
We attach herewith the presentation for the afore-mentioned Analyst Meet. The presentation is
also available on the website of the Company.
Kindly take the same on your records.
Thanking you,
Yours faithfully,
For Tata Communications Limited
PP Manish Sansi
Company Secretary &
General Counsel (India)
To:
1) Security Code 500483, BSE Ltd, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400001.
2) Security Code TATACOMM, National Stock Exchange of India Limited. Exchange Plaza, C-1, Block G, Bandra
Kurla Complex, Bandra (E), Mumbai, Maharashtra 400051
0
WELCOME TO
TATA COMMUNICATIONS
ANALYST DAY 26TH JUNE 2020
WHAT ARE THE CUSTOMER DRIVERS?
BOOSTING
PRODUCT
INNOVATION
AND
CUSTOMER
EXPERIENCE
ENABLING
BORDERLESS
GROWTH
BUILDING
AGILITY
IMPROVING
PRODUCTIVITY
AND
EFFICIENCY
MANAGING
RISK
WHAT IS DIGITAL?
DIGITAL IS
DATA APPLICATIONS CONNECTIVITY
OUR OPPORTUNITY LANDSCAPE
AVAILABLE MARKET
6 key platforms have been identified to significantly
contribute to our growth in revenue.
MOBILITY & IoT
NEXT GENERATION
CONNECTIVITY
VOICE
COLLABORATION
CLOUD, EDGE &
SECURITY
NETFOUNDRY
Available Market 2023
Mobility & IoT
CAGR +3.9%
2022 $243 Bn
2019 $217 Bn
Collaboration
CAGR +12.2%
2022 $35 Bn
2019 $25 Bn
Voice
CAGR (6.6)%
2022 $8 Bn
2019 $7 Bn
NetFoundry
CAGR +25.5%
2022 $109 Bn
2019 $55 Bn
Next Generation Connectivity
CAGR 0.2%
2022 $145 Bn
2019 $145 Bn
Cloud, Edge & Security
CAGR +12.0%
2022 $224 Bn
2019 $159 Bn
SOURCE: GARTNER, CISCO VNI, OVUM, F&S, TELEGEOGRAPHY, WAINHOUSE, INTERNAL REPORTS
237 254
145145
56
387 406
2019 2023
Global Network Spends (USD Bn)
Service Provider IPTransit market
Enterprises – Network Spend
Enterprises – Mobile Spend
SHIFT HAPPENING IN GLOBAL ENTERPRISE NETWORK SPEND
6
3.6%
-0.2%
2.6%
CAGR
83%
84%17%
16%
201
396
2019 2022
Consumer and Business data (EB per month)
BusinessConsumer
25%
23%
26%
CAGR
Source: Cisco VNI: Forecast and trends 2017-2022
0 6 14
10
45 50
68 60
19 17
1 2
2018 2023
Cloud Connect
P2P- IPL, Ethernet
MPLS
Internet
Traditional Managed Services
SD-WAN Managed Services
Global Enterprise Data Network Spending (USD Bn)
145 145CAGR
-2%
-3%
22%
2%
-6%
76%
Source: Gartner
1,2%
Source: Enterprise network and mobile spend from Gartner;
SP IP spend based on internal estimates
Enterprise
User7
WELL POSITIONED TO BE PREFERRED DIGITAL PARTNER
Retail end
customer
Enterprise Ecosystem
$145 Bn $145 BnEnterprise Network Spend
$237 Bn $254 BnEnterprise Mobility Spend
SP Ecosystem
Factory
Branches/
Offices Vendors/
Suppliers
IoT solutions
Data Centers
SP PoPSP PoP
Enterprise
Office
Base stations Base stations
SET OF OPPORTUNITIES
1 2Network
transformationEnterprise mobility
and apps
performance3 Service wrap 4 Network security
OTT/Cloud Ecosystem
DC to DC
connectivity
2019 2023
Not addressable by TCL
Addressable by TCL
New opportunity for TCL
Source: Cisco VNI, Gartner, Telegeography
IDENTIFYING KEY PILLARS
MOVETM IoT - Platform
enabling intelligent, agnostic
and network independent
global cellular connectivity
Collaboration - Fully managed
collaboration services for
enterprises
Network++1 - Enabling enterprise
network transformation to adopt
cloud, internet and software-
defined services (including SD-
WAN)
Media (Video Connect) –
Seamless and dedicated video
content delivery network
InstaCC – Cloud based digital
Customer and employee
experience portfolio for
enterprises across multiple
channels
MMX – Omnichannel Mobile
messaging service enabling
digital customer experience for
enterprises
DIGITAL ECOSYSTEM ENABLER: INTRODUCING SCDX
SECURE CONNECTED DIGITAL EXPERIENCE (SCDX)
9
SECURE CONNECTED DIGITAL WORKPLACE(WORKPLACE SOLUTIONS)
DIGITAL CUSTOMER EXPERIENCE PLATFORM(VIRTUAL SERVICE ENABLEMENT)
EXTRANET PLATFORM (WIP)(CONNECTED ECO-SYSTEM SOLUTIONS)
Driving Principles
▪ Build to suit the new
ways of working
▪ Create technology
solutions to solve
operational hurdles
▪ Understand the IT
priorities that
surround their
offerings
▪ Show Flexibility
SECURE
CONNECTED
DIGITAL
EXPERIENCE
(SCDX)
WHO OWNS THE CUSTOMER
IN THE DIGITAL ECOSYSTEM
PRODUCT –
OEMS
INDEPENDENT
SOFTWARE
VENDORS
SYSTEM
INTEGRATORS
IT
CONSULTANTS
VALUE ADDED
RESELLERS
PRODUCT –
OEMS
PLATFORM
PROVIDERS
WHO ‘CAN’ OWN THE CUSTOMER?
IN THE DIGITAL ECOSYSTEM
TATA
COMMUNICATIONS
as a
ENABLER OF
THE DIGITAL
ECOSYSTEM
TELECOM
CONNECTIVITY
PROVIDERS
INDEPENDENT
SOFTWARE
VENDORS
SYSTEM
INTEGRATORS
IT
CONSULTANTS
VALUE ADDED
RESELLERS
PLATFORM
PROVIDERS
OUR AMBITION
TO ACHIEVE PROFITABLE GROWTH
AND BECOME
A LEADING DIGITAL ECOSYSTEM ENABLER
IN THE EYES OF OUR CUSTOMERS
AND THE INDUSTRY
OUR STRATEGY
HEALTHY BALANCE SHEET AND DOUBLE DIGIT PROFITABLE GROWTH
WHAT HOWWHO
50DRIVE LEADERHSIP BEHAVIOURS
POSITIONING AS A DIGITAL ECOSYSTEM ENABLER
FINANCIAL
FITNESS
GROWTH
PLAN
CULTURE
WHAT HOWWHO
POSITIONING AS A DIGITAL ECOSYSTEM ENABLERGROWTH
PLAN
DRIVE LEADERHSIP BEHAVIOURSCULTURE
HEALTHY BALANCE SHEET AND DOUBLE DIGIT PROFITABLE GROWTH
FINANCIAL
FITNESS
Profitable Data Revenue GrowthDouble Digit EBITDA Growth with
focus on optimal cost structure
Significant Reduction of Net Debt
in 3 yearsRoCE at 20% in next 3 years
OUR STRATEGY
CLEANER
STRUCTURE
OWNERSHIP OF
OUTCOMES
AUTOMATION
TRANSPARENCY
SINGLE POINT OF
OWNERSHIPNamed account
owner
EFFECTIVE
ENGAGEMENTSCustomer service
team
Customer success
manager
OPTIMUS
SIMPLIFYING OURSELVES IN THE EYES OF THE CUSTOMER
SEGMENTATION
DEEPER WITH
FEWER
Our infrastructure spans the world to allow end-to-end programme delivery at any scale. We promise consistency, reliability and speed of content distribution.
TRANSFORMING THE LIVE MEDIA INDUSTRY ONE EVENT AT A TIME
2 Bn+ sports fansReaching over
10,000+ TB
Content storage & transferapprox. 1.5 million standard DVDs
5000+ live events
delivered, over 750remotely produced
LIVE EVENT SERVICES
KEY
CUSTOMERS
2014
2015
2016
2017
2018
• Frost & Sullivan’s Managed Services Provider of the year for Video
Services (Two years in a row)
• Leadership quadrant in Omdia’s Global Video CDN Services
scorecard
• World’s first truly live 4K 360o video streamed from a race
• Pioneering next-gen media infrastructure supporting world’s
majority of global sports events through production, distribution &
consumption
• Media focused cloud & edge services supporting the industry to
transition to a virtualised environment enabling safe re-opening of
sports events
• Helping media broadcasters' transition from traditional satellite
delivery to Fiber/IP based delivery & supporting their digital OTT
ambitions
• Dominant leadership position:
• LIVE 4K Tier 1 Global sports contribution & distribution
• Global Motorsports distribution (Mainly European)
• India sports market (IPL, PBL, PKL)
• Remote Production for Global sports events
Pathbreaking technology ownership
800+television channels
across US, Europe & Asia
Manage distribution for
With sports content
delivered through 90% of ALL
Global sports broadcasters
FOCUS ON BUILDING THE RIGHT PRODUCTS
3 DESIGN PRINCIPLES
1. Capex
efficiency
2. Platform
based
3. Agile NPI
4 BUSINESS VALIDATIONS
SCALABLE revenues from
products and services
PROFITABLE and
improving over time
DIFFERENTIATED product
and service design
RELEVANT to industry
trends and technology shifts
ENABLING ENTERPRISE DIGITAL TRANSFORMATION
Building
agility
Enhancing
Productivity and
Efficiency
Boosting product
innovation and
customer experience
Managing
risk
Enabling
borderless
growth
CUSTOMER
DRIVERS
PLATFORMS
AND
EXPERIENCE
Sustainability Innovation Artificial IntelligenceCOMMITMENTS
NEXT
GENERATION
CONNECTIVITY
CLOUD,
EDGE AND
SECURITY
COLLABORATION
NETFOUNDRY MOBILITY
AND IOT
VOICE
Customer intimacy Services Wrap
OUR NET PROMOTER SCORE (NPS)
YEAR 2019:
OUR NET PROMOTER SCORE (NPS)
YEAR 2020: